is cutting approximately 11% of its workforce in a bid to boost margins, the company said Wednesday, becoming the latest tech company to announce layoffs.
The cuts are part of a broader restructuring plan designed to “reduce operating costs, improve operating margins, and shift the company’s selling capacity to accelerate software sales,” Twilio (ticker:
) said in a filing to the Securities and Exchange Commission.
The company began notifying affected employees on Wednesday, but potential position eliminations may extend the process beyond the fourth quarter of 2022 depending on local laws and requirements, Twilio said. Twilio estimates it will incur between $70 million and $90 million in charges connected to the restructuring plan, including on severance payments and employee benefits.
Over the course of the year, tech giants, including
) have announced plans to cut jobs or slow down hiring.
Shares of Twilio rose 6.2% on Wednesday. The stock has lost 71% this year.
Write to Sabrina Escobar at [email protected]